Correlation Between Raba Jarmuipari and CIG Pannonia
Can any of the company-specific risk be diversified away by investing in both Raba Jarmuipari and CIG Pannonia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Raba Jarmuipari and CIG Pannonia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raba Jarmuipari Holding and CIG Pannonia Life, you can compare the effects of market volatilities on Raba Jarmuipari and CIG Pannonia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Raba Jarmuipari with a short position of CIG Pannonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raba Jarmuipari and CIG Pannonia.
Diversification Opportunities for Raba Jarmuipari and CIG Pannonia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raba and CIG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raba Jarmuipari Holding and CIG Pannonia Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG Pannonia Life and Raba Jarmuipari is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Raba Jarmuipari Holding are associated (or correlated) with CIG Pannonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG Pannonia Life has no effect on the direction of Raba Jarmuipari i.e., Raba Jarmuipari and CIG Pannonia go up and down completely randomly.
Pair Corralation between Raba Jarmuipari and CIG Pannonia
Assuming the 90 days trading horizon Raba Jarmuipari is expected to generate 1.74 times less return on investment than CIG Pannonia. In addition to that, Raba Jarmuipari is 1.6 times more volatile than CIG Pannonia Life. It trades about 0.07 of its total potential returns per unit of risk. CIG Pannonia Life is currently generating about 0.19 per unit of volatility. If you would invest 31,700 in CIG Pannonia Life on August 25, 2024 and sell it today you would earn a total of 3,400 from holding CIG Pannonia Life or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.7% |
| Values | Daily Returns |
Raba Jarmuipari Holding vs. CIG Pannonia Life
Performance |
| Timeline |
| Raba Jarmuipari Holding |
| CIG Pannonia Life |
Raba Jarmuipari and CIG Pannonia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raba Jarmuipari and CIG Pannonia
The main advantage of trading using opposite Raba Jarmuipari and CIG Pannonia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raba Jarmuipari position performs unexpectedly, CIG Pannonia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CIG Pannonia will offset losses from the drop in CIG Pannonia's long position.| Raba Jarmuipari vs. NordTelekom Telecommunications Service | Raba Jarmuipari vs. Infineon Technologies AG | Raba Jarmuipari vs. Delta Technologies Nyrt | Raba Jarmuipari vs. Nutex Investments PLC |
| CIG Pannonia vs. Appeninn Nyrt | CIG Pannonia vs. Raba Jarmuipari Holding | CIG Pannonia vs. NordTelekom Telecommunications Service | CIG Pannonia vs. OPUS GLOBAL Nyrt |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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